FBAA Welcomes ASIC Probe

The head of the Finance Brokers Association of Australia (FBAA) has welcomed the latest ASIC review into broking practices but warns the Commission to remember it is the lenders who write the rules not brokers.

FBAA chief executive officer Peter White says it is only fair that a mirror is held up to broking practices regarding interest only loans after ASIC had conducted a similar review into the lenders and loans.

“Lenders make the loan and lending rules that brokers must follow and in line with the brokers own responsible lending obligations, the vast majority are not intentionally breaking the law and are applying responsible lending considerations to the loans they arrange for borrowers.”

Speaking at last week’s FBAA conference on the Gold Coast, ASIC senior executive leader Michael Saadat raised concerns about consequences when brokers shifted business towards lenders who require less information and checks, but Mr White dismissed those worries.

“At all times, brokers have the borrowers best interests at heart while also being aware of the borrowers desires which are not the influencing factor as they are not always in line with responsible lending obligations.”

Mr White said he had been in constant talks with industry leaders, regulators and the Minister about broking practices during 2015 and vowed to continue to keep the dialogue open into the new year.

“This is all about education on both sides but from our end, it is vital we continue showing them how we work and the practices we have in place to eliminate any need for potential restrictive or more stringent regulation.”